Gold Surges While Bitcoin Slips as Iran Threatens Retaliation

Gold prices surged while Bitcoin (BTC) slipped sharply as escalating geopolitical tensions sent shockwaves through global markets.

It suggests investors rush to traditional assets to hedge against financial losses, raising concerns about Bitcoin’s safe-haven status.

Gold Approaches New Highs Amid Israel-Iran War

Crypto markets crashed, recording liquidations reaching $1 billion after Israel’s latest attack on Iran. As of this writing, Bitcoin traded for $104,830, down nearly 3% in the last 24 hours.

Bitcoin (BTC) Price Performance. Source: BeInCrypto

Similarly, the Ethereum price crashed 10% after the attack, exacerbating the liquidations.

In contrast, gold is rising. It is approaching new highs as the precious metal attempts to reclaim its position as the go-to haven during geopolitical stress.

“The deterioration of the geopolitical situation has caused a surge in gold prices,” stock analyst Mary noted.

She emphasized that critical support levels are $3,420, $3,402, and $3,380. A break above $3,440 potentially opens up a move toward the $3,468–$3,493 range during the US session. As of this writing, gold was trading for $3,422.

Gold price performance. Source: TradingView

Gold price could extend higher as the Israel-Iran tension threatens to escalate. Notably, following Israel’s attack on Iran’s nuclear sites and military leadership, Iran warned of a “lethal” response.

This will not be a mere demonstration of will or technological capability.This time, our response will be lethal.

— Iran Military (@IRIran_Military) June 13, 2025

To make matters worse, the US and North Korea appear to be taking sides. On the one hand, North Korea reportedly pledged military support for Iran. The country is slamming Israel’s actions, which show the need for a military response.

BREAKING — North Korea will provide Military Support to Iran. pic.twitter.com/xkFEFEVnGF

— Pamphlets (@PamphletsY) June 13, 2025

Pamphlets, a USSR State-affiliated media, noted that according to North Korea’s President Kim Jong Un, this is an issue of freedom. Kim had previously called Israel a cancer and a threat to world peace.

Notably, Iran is a member of the SCO, a mutual defense treaty that includes China and Russia. Against this backdrop, Beijing calls out the Israeli aggression on Iran as violating international law.

On the other hand, the US appears to be siding with Israel, despite its vested interest in diplomacy. CNN reported that Trump said he does not want Israel to target Iran as negotiations on a potential nuclear deal continue.

“I want to have an agreement with Iran. We’re fairly close to an agreement. … As long as I think there is an agreement, I don’t want them going in because that would blow it. Might help it, actually, but also could blow it,” CNN reported, citing Trump.

Reports link political anchor Bret Baier to the assertion that Trump is backing Israel.

BREAKING: Trump says the US will 'defend itself and Israel if Iran retaliates'

— The Spectator Index (@spectatorindex) June 13, 2025

This suggests that Trump may announce something different later today. Notwithstanding, Iran is committed to retaliating, raising the red flag of revenge.

BREAKING: IRAN RAISES THE RED FLAG OF REVENGE…SHOULD WE BE WORRIED?! pic.twitter.com/hOpgJmyYg4

— Mister Crypto (@misterrcrypto) June 13, 2025

The red flag is associated with mourning and martyrdom in Shia Islam. However, following the 2020 US drone strike that killed General Qasem Soleimani, a prominent Iranian military leader, red flags were raised as a symbol of revenge. The practice is tied to the supreme leader’s calls for retribution.

Safe Havens Revisited As Risk-Off Sentiment Dominates

The mounting crisis has fueled a stark divergence in asset performance. Gold is soaring while crypto is bleeding. Analysts are warning traders to watch for signs of weakening bullish momentum. This is especially if Europe’s trading session fails to maintain strength.

“The geopolitical situation is unstable, and brothers must strictly control the stop loss when trading independently,” analyst Mary warned.

The sentiment shift, favoring gold relative to Bitcoin, aligns with recent remarks from Marcin Kazmierczak. The co-founder and COO of RedStone told BeInCrypto that Bitcoin may not be ready to replace gold or bonds as a haven.

“With correlations ranging from -0.2 to 0.4, Bitcoin demonstrates a variable relationship with equities rather than providing the consistent negative correlation truly needed for effective portfolio protection,” Kazmierczak told BeInCrypto in the interview.

He said Bitcoin can add diversity to a portfolio but will not reliably protect against market crashes.

While some crypto proponents have argued that Bitcoin is digital gold, recent price action suggests it still behaves like a high-risk asset in acute uncertainty.

As tensions escalate and markets react, the contrast between gold’s rise and Bitcoin’s retreat shapes new narratives around safe-haven assets.

Investors are signaling a preference for the historical security of precious metals over the volatility of digital assets in times of crisis.